Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $460,000 Preferred dividends $40,000 Shares of common stock outstanding 150,000 Market price per share of common stock $40.60 a.  Determine the company's earnings per share on common stock. Round your answer to two decimal places. Use the rounded answer of requirement a for subsequent requirement, if required. $fill in the blank 1 b.  Determine the company's price-earnings ratio. Round your answer to one decimal place. fill in the blank 2

Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter17: Financial Statement Analysis
Section: Chapter Questions
Problem 11PEA: Earnings per share and price-earnings ratio A company reports the following: a. Determine the...
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Earnings per Share and Price-Earnings Ratio

A company reports the following:

Net income $460,000
Preferred dividends $40,000
Shares of common stock outstanding 150,000
Market price per share of common stock $40.60

a.  Determine the company's earnings per share on common stock. Round your answer to two decimal places. Use the rounded answer of requirement a for subsequent requirement, if required.
$fill in the blank 1

b.  Determine the company's price-earnings ratio. Round your answer to one decimal place.
fill in the blank 2

 

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